The Government's flagship policy to deliver low-cost homes to first time buyers could be a fail on the affordability front, according to its own ministry officials.
Documents released to Newshub Nation under the Official Information Act reveal KiwiBuild apartments and houses to be priced up to $600,000 in Auckland could still be well out of reach of their target market.
Mark Sainsbury speaks to Dr Oliver Hartwich, executive director of the New Zealand Initiative Economist, about KiwiBuild.
- Government report author: New Zealand's housing is a 'cluster'
- Housing Minister aims for first KiwiBuild home by mid-2018
- No means testing for KiwiBuild homes
The MBIE papers released to Newshub Nation say an analysis of the Auckland housing market in 2015 suggested only 25,000 private rental households in paid employment in the city made enough to buy a $500,000 house.
The Labour government plans to build 100,000 so-called affordable houses in a decade, with half of them in Auckland. In the rest of the country, the properties will be priced between $300,000 and $500,000.
Listen to the full interview with Dr Oliver Hartwich above.